Mumbai, March 30: Raymond will step up investment in its joint venture with Italian textiles major Gruppo Zambaiti.

The company will now invest Rs 200 crore in the joint venture, which will set up a greenfield facility in the country to manufacture high-value cotton shirting fabric. Raymond had earlier committed Rs 180 crore.

The proposed capacity of this facility has also been raised to 11.5 million metres from 10.5 million metres.

Raymond today formally inked the 50:50 joint venture with Cotonificio Honegger S.p.A., part of Gruppo Zambaiti. The facility will manufacture fine cotton and cotton linen fabric.

In addition to the equity support, Gruppo Zambaiti will bring in technological and design inputs and a global marketing network. The facility will cater to the international markets at the middle to the upper-end brands and offer custom-designed shirt material to international customers, including leading brands and retailers.

Gautam Hari Singhania, chairman and managing director of Raymond Ltd, said: ?Raymond and Gruppo Zambaiti have both been built on the basic philosophy of offering nothing but the best to the customer. The synergies go a step further in terms of the importance both assign to technology and leadership in designing in addition to leveraging the global marketing network of Honegger.?

He added that the joint venture is the first step towards creating global partnerships which can establish Raymond strongly in the international arena.

According to Pietro Zambaiti, president of Cotonificio Honegger, ?This agreement allows the fabric division of the Zambaiti group to partner with an international company like Raymond.?